Supply Chain Sustainability

Supply chain sustainability (SCS) constitutes a scholarly domain that has, over time, been characterized by an extensive array of definitions and frameworks. Nonetheless, the process of theory development within this discipline has not progressed in alignment with the evolution suggested by these variances. To remedy this predicament, it is imperative that both scholars and practitioners commence the utilization of a common, or at minimum, a congruent set of terminology, which is contingent upon a diverse array of interests, interpretations, and contributions from numerous sources. Consequently, this paper investigates the utility of practice theories as a theoretical framework for analysis within SCS research, aiming to foster the maturation of the field and enhance comprehension of SCS practices.

Supply Chain Sustainability

Sustainable supply chain management has emerged as a critical concern in both academic discourse and practical applications since the 1990s. The developmental phases as well as the spectrum of definitions—encompassing the intricacies and the multitude of individual processes—have undergone a series of alterations and refinements throughout the years. The proliferation of definitions and the theoretical breadth serve as obstacles to the practical application of the concept within the economic sphere. (PDF) Sustainable supply chain management – past, present and future.

Sustainable Supply Chain Management Practices are regarded as a pivotal organizational philosophy for the realization of a firm's profit maximization and market share objectives. This paradigm fosters a diminution of environmental risks and impacts, while concurrently ensuring an enhancement in the ecological efficiency of both the firms and their supply chain counterparts. The integration of the environmental dimension with supply chain management represents a salient issue on a global scale, one that cannot be overlooked by enterprises. The escalation of environmental emissions and related concerns has necessitated a reduction in pollution stemming from industrial development in conjunction with supply chain management practices.

In recent decades, noteworthy progress has been observed in supply chain management (SCM) due to its pivotal importance across various domains. However, escalating environmental concerns regarding waste generation, heightened emissions, and the depletion of resources associated with SCM activities and services have paralleled this rapid growth. SCM is intrinsically linked to environmental repercussions as it is involved in corporate operations and processes that have direct implications for the environment, such as procurement, manufacturing, and distribution. Presently, a significant majority of enterprises are engaged in some facet of at least one supply chain, and the methodologies employed by these organizations in managing supply networks possess the potential to alleviate detrimental environmental impacts and promote ecological conservation. Therefore, SCM plays an indispensable role in the realm of environmental protection.

The demand for products and services that are environmentally sustainable has been amplified by stakeholders, consumers, and governmental authorities, as the prevalence of environmental challenges, resource depletions, and degradation of ecological systems has escalated. The escalating expectations of stakeholders, customers, and regulatory bodies have compelled organizations to transform their traditional supply chains by incorporating sustainable inputs and transitioning towards sustainable supply chains. This paradigm shift facilitates the provision of products and services that demonstrate enhanced environmental responsibility.

Currently, the persistent agenda of environmental sustainability compels industrial enterprises globally to address ecological issues and acknowledge the necessity of environmental management, thereby demonstrating a rational approach towards sustainability. An increasing number of manufacturing firms have initiated the implementation of sustainable methodologies throughout their supply chains in response to the augmented awareness of environmental issues that has evolved over the past few centuries. Numerous manufacturing entities have commenced the adoption of proactive sustainable supply chain management (SSCM) practices, with the objective of delivering environmentally considerate products and services that exert minimal detrimental impacts on society and the ecosystem. Consequently, manufacturers are currently embracing a plethora of innovative and ambitious practices, which include sustainable procurement, eco-friendly production, environmental conservation, supplier collaboration, green product design, optimization of logistics, and reverse logistics.

With the swift advancement of economic conditions, the purchasing and expenditure capabilities of individuals have significantly escalated. The substantial surge in global consumption has engendered an immense demand for resources (such as materials and energy) alongside a proliferation of pollutants, thereby impeding the trajectory of global sustainable development. These challenges have garnered considerable attention from both academics and enterprises, leading to the recognition of green and sustainable supply chain management (GSSCM) as a pivotal solution.

The GSSCM framework is conceptualized as the integration of environmental considerations into supply chain management, encompassing product design, material sourcing and selection, manufacturing processes, delivery of the final product to consumers, and the management of a product's end-of-life following its useful duration. Acknowledging its fundamental role in facilitating economic restructuring and fostering a harmoniously sustainably developed society, governmental authorities have instituted various effective measures to promote GSSCM practices, such as cap-and-trade regulations, low-carbon subsidy initiatives, and carbon taxation policies.

The realm of innovation within Supply Chain Management (SCM) has ascended to unparalleled levels due to the extensive integration of emergent technologies, such as the Internet of Things (IoT), blockchain technology, cloud computing, and big data analytics. In this context, it is imperative to acknowledge the significant role of online platforms as pivotal vehicles for innovation in SCM. Consequently, the imperative to green the entire supply chain while simultaneously fostering the rapid evolution of a platform economy is of paramount importance. The prevalence of platforms is notable, with a growing number of enterprises opting to engage with online third-party platforms to enhance profitability. These platforms may operate under diverse business models, such as charging a commission for each transaction between sellers and buyers, as exemplified by Tmall.com, or purchasing goods from manufacturers for resale to consumers, as demonstrated by JD.com; nevertheless, they may also share analogous strategies, as illustrated by the aforementioned platforms, both of which leverage omni-channel retail approaches. Platforms engage in competitive dynamics, and firms may experience heightened demand disruptions upon their integration. Additionally, a firm encounters numerous challenges when entering a third-party platform, including demand volatility and competitive pressures. Nonetheless, engagement with a platform can augment product competitiveness and draw a larger consumer base.

Issues pertaining to sustainability within supply chains have progressively garnered attention in the scholarly literature of supply chain management over the past several decades. Despite the significant escalation in research focused on sustainability and the expectation that such efforts would engender positive outcomes for business and industry, the majority of enterprises continue to grapple with enhancing their sustainable supply chain performance. Among these enterprises are food manufacturing supply chains, which have faced considerable critique due to their detrimental impacts on both the environment and society at large. This scrutiny has intensified the urgency for food manufacturing firms to adopt sustainable supply chain practices; however, a substantial number of these firms are falling short in the implementation of effective sustainability measures. The persistent adverse effects of food manufacturing supply chains underscore the critical necessity for addressing the sustainability performance of these organizations.

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